The U.S. Securities and Exchange Commission is preparing to decide on a landmark rule mandating public companies to disclose extensive climate-related data, potentially reshaping corporate transparency on environmental impact.
Avery Ellfeldt reports for E&E News.
In short:
- The rule would require companies to report how climate change and clean energy transitions impact their financial statements.
- Opposition from Republicans and business groups cite concerns over the rule's complexity and cost.
- Modifications to the initial draft could alleviate some requirements but still mark a significant move towards climate-related corporate accountability.
Why this matters:
This rule will help integrate climate risks into financial considerations, potentially influencing both investment strategies and public policy. It represents a substantial shift in how companies and regulators address the financial dimensions of environmental challenges.
Be sure to read Kristina Marusic’s piece: Oil and gas methane emissions in US are at least 15% higher than we thought.
